Reported by Astute Analytica, the D2C coffee market is estimated
to rise to 15.3% during the period 2020-2027, globally. The market is
analyzed to see addition of more than USD 1.56 Bn of opportunity over this
forecast term, with volume sales crossing 139.0 kilotons by 2027.
Direct-to-consumer coffee (D2C or DTC) is roasted,
ready-to-serve coffee that can be found at coffee shops, retailers, and
shopping malls. DTC coffee is available to anyone who wants to make an instant
coffee drink. Pouches, jars, ready-to-drink coffee, and various varieties of
direct-to-consumer coffee are available. The demand for unconventional and
premium products has risen in recent years, and a dozen or more coffee
startups/direct-to-consumer (D2C) businesses are catering to the changing
customer taste and expectations. A surge in disposable income and a shift in
lifestyle has undoubtedly shifted the global demography towards delightful
meals and beverages.
The research study analyzes the impact of some of the major
market drivers such as the rising demand of certified and organic products.
Consumers have been increasingly aware of the manufacture of the things they
buy in recent years, as well as the origins of their purchases. This is
especially true in the case of food and beverage supply chains, including
coffee. As a result, people are eager to purchase certified coffee goods to
assure the quality of the product. Because coffee is becoming an increasingly
popular target for food counterfeiters, certified coffee provides consumers
with assurances about the product's reliability. Certifications provide
consumers with a variety of third-party assurances. They can provide
verification for environmentally responsible farming techniques, up to and
including organic certification. Fair Trade is one such certification that
strives to improve the lives of farmers in underdeveloped countries by
guaranteeing a minimum price, connecting them directly with importers, and
ensuring long-term environmental stewardship and sustainability. It's a product
certification method that verifies the social, economic, and environmental
elements of production against Fairtrade Producer and Trader Standards. The
Fairtrade system keeps track of the product's purchase and sale until it's
packaged and labelled for consumers. Since 2000, Starbucks has offered
Fairtrade coffee. Fair trade coffee is coffee that has been recognized by fair
trade organizations as having been produced according to fair trade standards.
Fair trade organizations form trading partnerships based on discussion,
transparency, and respect with the purpose of attaining more equity in
international trade. Starbucks sold 34.3 million pounds of Fairtrade coffee in
2011, accounting for 8% of total sales. Also, the firm purchased 9.6 million pounds
(2.2%) of certified organic coffee in the same year. However, growing number of
health-conscious consumers, as well as the negative health impacts associated
with excessive caffeine consumption, are likely to hinder coffee's growth and
sales.